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Selling low and buying high?

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Insights and Market Perspectives

Selling low and buying high?

Author: Sound Choices

June 11, 2019

Volatility series


While market volatility causes uncertainty, its occurrence is actually a certainty. This series of articles provides insight to help put volatility into perspective.


Market corrections can be unnerving to investors trying to understand if the decline is a shorter-term pullback or the beginning of a sustained downturn.

Shorter-term declines or ‘market corrections’ happen frequently and can trigger the fear of a bigger market decline – but most don’t actually result in a bear market, a decline of 20%.

Based on Ned Davis Research data of S&P 500 Index performance between January 1928 and October 2018.

So why do some investors still buy high and sell low?

Equity fund flows show investors pulling out of the market when the index falls and money being invested as the markets rise.

Source: IFIC Primary View and Morningstar Direct, as of March 31, 2019. This is a hypothetical example, for illustrative purposes only. All values are in Canadian dollars. You cannot invest directly into an index.

Investors know intuitively to buy low and sell high – but even the most seasoned investors can find their own emotions affect the decision-making process.

Market volatility or declines often make people nervous and they can react by pulling their money out of the market.

Similarly when markets have persistently gone up, investors often buy in at the wrong time.

Staying focused on the long term can help investors tune out the noise.


A financial advisor can help you understand current market events and help you understand how they may impact your investments and your plan. If you’re concerned about market volatility, contact your financial advisor.


The commentaries contained herein are provided as a general source of information and should not be considered personal investment or tax advice. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change investment decisions arising from the use or reliance on the information contained here.

The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

AGF Management Limited (“AGF”), a Canadian reporting issuer, is an independent firm composed of wholly owned globally diverse asset management firms. AGF’s investment management subsidiaries include AGF Investments Inc. (“AGFI”), AGF Investments America Inc. (“AGFA”), Highstreet Asset Management Inc. (“Highstreet”), AGF Investments LLC (formerly FFCM LLC) (“AGFUS”), AGF International Advisors Company Limited (“AGFIA”), Doherty & Associates Ltd. (“Doherty”) and Cypress Capital Management Ltd. (“CCM”). AGFI, Highstreet, Doherty and Cypress are registered as portfolio managers across various Canadian securities commissions, in addition to other Canadian registrations. AGFA and AGFUS are U.S. registered investment advisers. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF investment management subsidiaries manage a variety of mandates composed of equity, fixed income and balanced assets.

TM The “AGF” logo and ® “Sound Choices” are registered trademarks of AGF Management Limited and used under licence.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

© 2021 AGF Management Limited. All rights reserved.

Written by

Sound Choices

Sound Choices

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